Date: August 14, 2018
PANJAM Investment Limited (PJAM), for six months ended June 30, 2018 reported a 12% increase in total income to $1.11 billion relative to $948.37 million booked for the prior year’s corresponding period. For the quarter total income increased 31% to $586.95 million (2017: $446.82 million).
Of total income:
• Investment increased 12% to close at $145.11 million (2017: $129.92 million).
• Other income slid 31% or $27.31 million from $88.37 million to $61.07 million.
Operating expenses amounted to $775.17 million for the first six months ended June 30, 2018 (2017: $696.32 million), 11% more than its total a year prior. Operating expenses for the quarter also increased at 11% to close at $403.57 million (2017: $362.71 million).
Consequently, Operating Profits jumped by 33% to a total of $335.30 million relative to $252.05 million a year earlier, while for the quarter operating profit soared to $183.39 million (2017: $84.11 million).
Finance costs for the period rose by 11%, amounting to $310.17 million compared to the $279.38 million for the comparable period in 2017.
Gain on Disposal of associated company amounted to $47.31 million relative to nil for the prior year, while the Share of results of associated companies slightly declined 2% to $1.81 billion (2017: $1.85 billion). PJAM noted, “mainly resulting from improved property income.”
Profit before taxation increased 3% closing the period at $1.88 billion (2017: $1.82 billion). Following taxation of $59.47 million (2017: $39.74 million), Net Profits amounted to $1.82 billion (2017: $1.78 billion).
Net Profit Attributable to Shareholders for the period amounted to $1.81 billion, a 3% increase over the $1.76 billion recorded the year prior. For the second quarter, profit attributable to shareholders amounted to $981.95 million relative to $928.91 million.
Consequently, earnings per share for the period amounted to $1.70 (2017: $1.65), while the second quarter amounted to $0.92 (2017: $0.87). The trailing twelve months earnings per share was $3.92. The number of shares used in the calculation is 1,066,159,890 units. PJAM’s stock last traded on August 14, 2018 at $51.81.
PJAM stated, “The outlook on Jamaica’s rating as a long-term bond issuer was upgraded in July by Moody’s from stable to positive. The rating agency noted the commitment to continued fiscal consolidation and improving policy effectiveness, observations that we have shared and that cause us to feel optimistic. Indeed, the upgraded outlook implies that further rating improvements are likely if discipline is maintained. On the other hand, the Prime Minister recently highlighted the need for regulatory and bureaucratic systems to operate with improved efficiency and alacrity, speaking specifically about construction approvals. This is a challenge that we have repeatedly pointed to as one that will have to be overcome if Jamaica is to achieve higher levels of economic growth. We are heartened by this acknowledgement, at the highest level of government, of the seriousness of the issue and we look forward to the rapid announcement of specific initiatives that will address the problem holistically and effectively.”
Balance Sheet at a glance:
As at June 30, 2018, PANJAM Investment Limited (PJAM) had assets totaling $39.94 billion, a 10% increase relative to $36.16 billion a year prior. The growth was attributed to an increase in Investment in associated companies which amounted to $24.68 billion (2017: $22.00 billion). This was tempered by the decline in ‘Securities purchased under agreements to resell’ which closed at $546.08 million (2017: $2.39 billion), declining by 77%.
Shareholders Equity amounted to $31.10 billion (2016: $27.21 billion) with a book value per share of $29.17 (2017: $25.52).
Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.